Kulfi Finance introduces a DEFI protocol to allow users to lend and borrow crypto at a fixed rate

Kulfi Finance’s protocol will facilitate the lending and borrowing of fixed-rate, fixed-term crypto assets through a novel financial tool called wTokens. wToken are essentially transferable tokens that represent a claim to positive or negative cash flow at some point in the future.

The liquidity pools on Kulfi Finance are capitalized by liquidity providers contributing pTokens (principal tokens), which are effectively interest-bearing assets. These pTokens are used within Kulfi to offer liquidity providers better returns. Liquidity providers, acting as counterparties to the protocol’s active lenders and borrowers, essentially contribute liquidity to liquidity pools and in return earn fees each time a lender or borrower makes a trade.

Both lenders and borrowers receive fixed interest rates at Kulfi. These remain fixed over time, which is not the case with many platforms – those that sometimes offer stable rates, but only at a premium – and change rates frequently as market conditions change.

Features of Kulfi Finance

According to an announcement today by Kulfi product manager Brian Jackson, “Kulfi offers low-cost and efficient liquidity by allowing holders of certain cryptocurrencies to borrow other related assets without selling the coins.” The funds deposited provide the necessary liquidity to the Kulfi platform while users earn interest on their holdings. Kulfi Finance is a non-custodial money market protocol that offers various interest rate products on the Cardano blockchain, including fixed and floating rates. While the variable loan products depend on supply and demand, cross-collateral lending and instant loans determine interest rates, the fixed loan product is based on the zero-coupon bond concept.

Kulfi token (KLS) and governance

KLS is a Cardano token that governs the Kulfi protocol. KLS owners can propose, vote on and implement changes to Kulfi system parameters and smart contracts. Each KLS owner gets one vote per KLS they own. Check the KLS token on Pool.pm

The KLS holders are responsible for managing the Kulfi on-chain treasury, setting risk and collateral parameters, and coordinating on proposed upgrades to the Kulfi smart contracts. The $KLS token can be used for “access to the Kulfi liquidity pool for variable borrowers”, “governance voting” and “staking”.

Interested investors who want to get into the pre-seed and acquire $KLS tokens on Pre-Seed Round before listing, you can do so by clicking on the link below.

https://kulfifinance.io/buy

Kulfi Token (KLS) token utilities and tokenomics

Propose and evaluate protocol upgrades
Access grant for Kulfi borrowers
Inclusion of new types of collateral and determination of liquidity fees
Activation of new terms for lending and borrowing of various assets
Transaction fees within the Kulfi ecosystem can be paid with KLS tokens
KLS holders earn a percentage of the fee paid in the Kulfi ecosystem
Loan repayment can be made with KLS tokens

Everything is clear with the governance attributes of the KLS token in the protocol’s white paper. KLS supply is capped at 1 billion tokens, making it deflationary. KLS can be used to buy NFTs and cryptocurrencies at a discount on regular trading pairs. $KLS can also be used as collateral currency for Kulfi lending protocol.

70 million KLS tokens were made available for the Kulfi Pre Seed Round.

Participate in the pre-seed sale of KLS tokens

Kulfi Token is currently activated Pre-Seed Sale for early buyers: This is the first and limited opportunity for the public to get exclusive early access to purchase Kulfi tokens at 1 ADA = 200 KLS tokens.

Interested participants can follow the link to buy KLS tokens at a fair price – https://kulfifinance.io/buy

Kulfi technology

“The initiative allows fixed-rate lending by lenders and fixed-rate, term borrowing by borrowers. Kulfi Finance aims to serve as the ecosystem’s liquidity gateway for Cardano DeFi through the use of streamlined user interfaces and reduced collateral requirements,” Kulfi Finance explained in a statement. Kulfi Dapp users do not have to pass standard identification procedures such as Know Your Customer or KYC processes, giving users complete anonymity.

Kulfi enables fixed rate lending with a finance primitive called wToken. wToken are transferrable tokens defined by a currency type and an expiration date. At maturity, the wToken token is redeemable for the underlying currency type in the Kulfi portfolio. wToken allows lenders and borrowers to define and trade cash flows on specific dates in the future. Read moire on wToken properties.

Currently, Kulfi offers five primary services: borrowing, lending, staking, liquidity provider, principal tokens, and non-fungible tokens (NFTs).

Find out more about Kulfi Finance

Join KLS Pre Seed: https://kulfifinance.io/buy
Website: https://kulfifinance.io
Twitter: https://twitter.com/kulfi_finance
Telegram: https://t.me/+rphyUBMegsU3ZTI0
Discord: https://discord.gg/fzsa8ynF97
Instagram: https://www.instagram.com/Kulfi_finance/
Medium: https://medium.com/@Kulfi_finance
Gitbook: https://kulfi.gitbook.io/kulfi-finance-3/

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